A house is more than just a property - it is a piece of family history. Perhaps the first nursery was furnished there, perhaps birthdays were celebrated in the garden or the big questions of life were discussed on the terrace. For many parents, their home is therefore not just an asset, but a place full of memories that they want to pass on to their children.
However, what sounds like a simple wish at first glance often proves to be a complex step in practice. Questions about inheritance tax, tax-free amounts, wills and the right form of transfer arise - and with them uncertainties. If you want to bequeath your parental home in a sensible and conflict-free way, you should inform yourself early on and set the right course.
In this guide, we show you what you need to bear in mind if you want to pass on a property to your children - whether by will, gift during your lifetime or in the form of an inheritance contract. This will ensure that your home remains a place of safety and security in the future.
We'll help you find the right investment for your child!
What happens if there is no will?
Those who want to pass on the family home to the next generation often think first of values such as security and solidarity. But many parents underestimate this: Without a will or an inheritance contract, it is not their own will that determines the future of the house, but the legal succession - and in many cases this causes more dispute than clarity.
π Legal succession: who gets what in the event of death?
If there is no will, statutory succession automatically comes into force. In this case, the spouse or registered partner and the children inherit first in fixed proportions. If there are several children, the inheritance is divided among them - even if one of them would like to take over the parental home and the others would prefer to sell.
Exemplary distribution in the case of statutory succession:
- Spouse + 2 children = spouse receives 50 %, children 25 % each
- No spouse present = children share the inheritance equally
- No children present = parents, siblings or their children have a turn
Although this form of distribution is regulated by law, it often does not meet the family's individual expectations - especially if the home or apartment is or is to remain the center of a child's life.
β οΈ Community of heirs: When no one is allowed to decide alone
If a property is inherited by several relatives, a so-called community of heirs is created. This means that every decision about the house - be it selling, renovating or renting - must be made jointly. Conflicts are inevitable if there is disagreement. Inheritance disputes can quickly arise, costing not only nerves but also a lot of money.
π‘ Create clarity at an early stage
A missing will can lead to uncertain situations and emotional stress - especially for the children. By clearly formulating your last will and testament, you protect your assets, ease the burden on your loved ones and ensure a smoother transfer of family property.
Will, gift or usufruct? An overview of the options
You want your child to take over the parental home one day - but you don't know which path is the right one? Don't worry, you're not alone. There are various ways in which you can transfer your home: by will, by a gift during your lifetime or with special arrangements such as usufruct. Each option has its own advantages - and pitfalls.
π The will: clearly regulating your last wishes
The traditional will is probably the best-known way to bequeath your home in the event of your death. It allows you to clearly determine who should receive what - regardless of the legal order of succession. Important: It is only valid without a notary if you write, date and sign it completely by hand. If you want to be on the safe side, have it notarized and entered in the Central Register of Wills.
Good to know:
A will does not automatically protect you from inheritance disputes. Claims to a compulsory portion from relatives (e.g. siblings or grandchildren) also remain - and in the worst case can lead to financial burdens.
π Gifts during your lifetime: More control, less dispute?
Many parents decide to transfer the house during their lifetime - by means of a gift agreement. The big advantage: you can actively help shape the transfer, make multiple use of tax allowances (e.g. 400,000 euros for children) and avoid conflicts in the event of inheritance.
Tip:
The gift should always be notarized. You should also report it to the tax office in good time to avoid problems with gift tax later on.
π§Ύ Usufruct & right of residence: making a gift - but continuing to live there
If you are transferring your home but would like to continue to live in it or even rent it, you can register a usufructuary right or a lifelong right of residence. This secures your use of the property - and at the same time reduces the tax value of the gift.
π¬ The right solution depends on your life situation
Whether it's a will, gift or usufruct - it's important that you look at the options early on. That way, you and your family can find a solution that suits your values and goals.
Family home tax trap? What you should know about allowances & inheritance tax
Inheriting a house is not only an emotional decision, but also a tax decision. Many parents are not even aware that high costs can arise when passing on a property - especially if tax-free amounts are exceeded or formalities are not observed. To ensure that your child does not end up facing a financial burden, it is worth taking a closer look at the tax regulations relating to inheritance.
π° Inheritance tax or gift tax - what is due and when?
Whether you pass on your home by will or during your lifetime: The tax office will contact you in both cases. Inheritance tax is payable on a transfer on death and gift tax on a gift during your lifetime. The good news is that both options offer identical tax-free allowances.
Exemplary allowances for close relatives (tax class I):
- Children: 400,000 euros
- Spouse/domestic partner: 500,000 euros
- Grandchildren (if parent already deceased): 200,000 euros
These allowances can be used again every ten years - this often makes a lifetime gift particularly attractive.
π‘ Tax exemption for the family home - under certain conditions
If your child uses the parental home themselves after your death, they can be completely exempt from inheritance tax under certain conditions. The conditions:
- The child moves in no later than six months after the death.
- It uses the house or apartment itself for at least ten years.
- The living space does not exceed 200 mΒ² (if this is exceeded, pro rata taxation may apply).
Please note: In exceptional cases (e.g. need for care), early retirement can still be recognized for tax purposes - in this case, it is worth consulting experts.
π Better to calculate beforehand than regret afterwards
A house is a major asset - and can quickly become a tax trap if you don't plan ahead. By making smart decisions, you not only secure your property, but also your child's financial future.
We'll help you find the right investment for your child!
- An additional $25,703 per child, thanks to our modern ETF strategy
- Find the perfect ETF investment for your child in a 30-minute video conference from the comfort of your own home.
- Sit back and watch your child's assets grow β our experts will take care of the rest.
If several children inherit: how to avoid arguments about the house
For many families, the family home is a place of remembrance - but it can quickly become a point of contention after a death. If several children are named as heirs, a so-called community of heirs is created. This constellation is legally clear, but often highly explosive emotionally. Without clear rules, the beloved home quickly becomes a trigger for conflicts that can put a strain on families in the long term.
π¨βπ©βπ§βπ¦ What does community of heirs actually mean?
A community of heirs is not a voluntary association, but arises automatically when several relatives - such as siblings - inherit together. Each of the heirs owns the entire property jointly, not a clearly separated share. Decisions about the property, such as its use, renovation, rental or sale, must be made unanimously.
Typical challenges:
- One child wants to live in the house, the others prefer to sell.
- Disagreement about the value of the property.
- Different financial situations within the family.
π οΈ These paths lead out of the dead end
There are various solutions to avoid disputes:
Possible ways of reaching an agreement:
- Takeover by a child with payment of the siblings.
- Sale of the property and fair distribution of the proceeds.
- Rental and distribution of income.
- Dissolution of the community of heirs by notarial contract or judicial division.
Important: If no agreement is reached, a co-heir can apply for a partition auction - often with major financial disadvantages for all parties involved.
π€ How to create clarity - while you're still alive
You can prevent your children from getting into this situation today. A clearly formulated inheritance contract, a specific gift during your lifetime or a will with clear provisions regarding the parental home will help to avoid conflicts.
π§ Shared heritage needs clear leadership
Instead of burdening your child with difficult decisions afterwards, you can set the framework now - fairly, understandably and in the interests of the whole family. This ensures peace and the feeling that you are really passing on something valuable.
6. financial provision instead of real estate stress: how Invest4Kids can help you
Not every family owns a house or apartment that they can inherit - and even if they do, the path to doing so often involves many uncertainties and tax hurdles. What all parents have in common, however, is the desire to give their child security and a good start in life. This is precisely where Invest4Kids comes in - with a modern pension concept that is flexible, tax-efficient and precisely tailored to the needs of families.
π‘ Investing for your child - simple, safe and predictable
With Invest4Kids, you can build up long-term assets for your child for as little as 25 euros a month - without owning any real estate. You retain full control: even when your child comes of age, you can decide when and how the assets are transferred. The right of determination from the age of 18 is unique and prevents the capital saved from being used in an ill-considered manner.
Advantages at a glance:
- No capital gains tax on reallocations.
- Tax-free reinvestment of all income.
- Condition assurance: Your contract remains stable even if the law changes.
- No custody, transaction or hidden fees.
- Flexible adjustment of savings installments or one-off payments possible at any time.
π¬ Voices from the Invest4Kids community
"We wanted to give our children something - but a house wasn't financially feasible. With Invest4Kids, we still have a good feeling." - Markus, father of two
"The advice was honest and competent. Now we're saving for our daughter - and we know it's right." - Sandra, single mother
β A clear conclusion
Invest4Kids is more than just a financial product - it's a way to give your child security without having to bequeath an entire house. It's worth taking this step early on.
Emotional perspective: What do you really want to leave your child?
When we think about inheritance, we often talk about numbers, taxes, contracts and land. But what is it really about? Is it the house itself - or what it symbolizes: safety, security, a place where your child can grow and develop?
Maybe you can't leave a home of your own. Or maybe you don't want your child to have to deal with inheritance disputes, inheritance tax or renovation costs later on. What counts is your decision to do something today for tomorrow.
π§ A thought that remains:
What you leave behind is not just property. It is a message.
Whether by handing over the parental home or by making clever financial provisions - you give your child a sense of stability. And you show: "I've thought about you. I want you to have a good life."
This could be a house. But it can also be a cleverly planned savings contract. Or both.
In the end, it's not just square meters that count - but heart, responsibility and vision. The decisions you make today will shape your child's future. And that is perhaps the most valuable thing you can pass on.
π± Act now - for the future of your child
Inheriting a house is a decision full of responsibility - and also full of opportunities. Whether you own a family home, want to buy a property or are looking for alternative options, it pays to plan early. With a clear will, a well thought-out gift during your lifetime or a flexible pension plan such as Invest4Kids, you can avoid disputes, save taxes and create real added value.
It's important that you take the first step - because the biggest mistakes don't come from making the wrong decisions, but from not making any at all. You don't have to decide everything today, but you can start safeguarding your child today.
π¬ O ur tip: Get free advice from the Invest4Kids experts - completely non-binding, honest and easy to understand. This will help you find the path that suits your family, your financial situation and your values.
π Make an appointment now and make provisions with a good feeling - because your child's future shouldn't wait.
We'll help you find the right investment for your child!
- An additional $25,703 per child, thanks to our modern ETF strategy
- Find the perfect ETF investment for your child in a 30-minute video conference from the comfort of your own home.
- Sit back and watch your child's assets grow β our experts will take care of the rest.
